ᐅ Price Increase – Our Construction Company Wants 21.4% More

Created on: 7 Sep 2021 16:10
P
Pinkiponk
I am honestly shocked right now. Our construction company just informed me that they want 21.4% more money due to price increases in the building industry. At the moment, I am still stunned and can’t think clearly.
H
hampshire
9 Sep 2021 10:39
This provides an initial reference point by analyzing the development of price per square meter. There are good statistics available – you can find them from associations and government ministries.
Whether someone has spent 1900, 2850, 3000, or 5000€/m² (per square meter) does not say very much on its own.
S
Schneckham
9 Sep 2021 12:52
We are at about 2500 euros per square meter in the south of Baden-Württemberg.

Included are:

- Basement with waterproof concrete shell
- Electric roller shutters everywhere (motorized blinds in living areas)
- Lighting and blinds controllable via digital power system
- Guest bathroom with tiled shower
- Laundry chute
- Half-landing staircase
Etc.

Not included:
- Earthworks
- Additional construction costs

We are building with a regional general contractor, and all companies involved are located within a radius of about 15 meters (50 feet). However, he is sticking to the price he quoted us in September 2020.
S
Stephan—
9 Sep 2021 12:52
A quick comment from someone not building with a general contractor.

Offer from January to August 2021 for the shell construction of a single-family house, 171m2 (1840 sq ft)
minimum 1.8%, maximum 35% increase, with an average of 12.6%. Steel, concrete, and wood are the major cost drivers.

Brandenburg, east of Berlin.
T
Tom1978
9 Sep 2021 12:59
Schneckham schrieb:

We are currently at about 2,500 Euros per square meter in the southern Baden-Württemberg region.

This includes

- Basement with a waterproof concrete box (white tank)
- Electric roller shutters throughout (venetian blinds in the living area)
- Lighting and blinds controllable via digital power system
- Guest toilet with tiled shower
- Laundry chute
- Half-turn staircase
Etc.

Not included
- Earthworks / excavation
- Additional construction costs

We are working with a local general contractor, and all subcontractors are located within a radius of about 15 meters (10 miles).
He is also sticking to the price he quoted us back in September 2020 with the offer.

However, earthworks should be considered part of the house price. Excluding them slightly distorts the calculation and the stated figure of 2,500 €/sqm.
S
Schneckham
9 Sep 2021 13:01
For the earthworks, we are at 2650€. However, count these as additional costs.
Tolentino9 Sep 2021 13:07
Schneckham schrieb:

For earthworks, we are looking at €2650.
However, I count that as an additional cost.

In my opinion, this is the usual approach because soil conditions vary significantly and have a huge impact on earthwork expenses.